SEC Hammers Unicoin: $100M Crypto ’Security’ Scheme Collapses as Execs Face Charges

Another day, another crypto scandal—this time with a nine-figure price tag. The SEC just dropped the hammer on Unicoin and three top brass for allegedly running a $100 million securities fraud operation. Who could’ve seen that coming? (Answer: Anyone who’s watched crypto ’projects’ for more than 15 minutes.)

Regulators claim the team peddled unregistered securities disguised as revolutionary blockchain tokens—classic move. Meanwhile, retail investors are left holding the bag while the execs face the music. But hey, at least they didn’t call it a ’DeFi yield farming protocol’ to make it sound fancier.

Pro tip for aspiring crypto founders: If your whitepaper promises ’guaranteed returns,’ maybe—just maybe—you’re building a Ponzi, not the next Bitcoin. The SEC’s filing reads like a greatest-hits album of red flags: fabricated financials, phantom partnerships, and the obligatory celebrity endorsement leaks. Stay tuned for the inevitable plea deals and LinkedIn rebrands.

Unicoin CEO sold 37.9 million of his own certificates

Investigators highlight three key misstatements. First, executives said the future tokens were “asset-backed” by billions of dollars in property and stakes in pre-IPO firms, even though company assets were only a fraction of that figure.

Second, they boasted of selling more than $3 billion in certificates, while actual proceeds never exceeded $110 million. Third, they described the certificates and tokens as “SEC-registered” or “U.S. registered,” though no registration had been filed.

The complaint also accuses Konanykhin and the company of running unregistered offerings. Regulators say the chief executive sold more than 37.9 million of his own rights certificates, often at a discount.

Unicoin, Konanykhin, Moschini, and Dominguez are charged with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

The SEC asked the court for “permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties ” and orders barring the trio from serving as officers or directors of public companies. The action also seeks civil fines against the company itself.

The suit further names general counsel Richard Devlin, alleging he repeated similar false claims in private placement memoranda. Without admitting or denying the allegations, Devlin has agreed to a settlement that imposes a permanent injunction and a $37,500 civil penalty.

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